Average house price in England & Wales is 6.8 times the national average annual salary

Average house price in England & Wales is 6.8 times the national average annual salary

Average house price in England & Wales is 6.8 times the national average annual salary

There are now 202 of the 364 areas in England & Wales where the average house price amounts to seven times or more the average annual salaries earned in those areas. In fact in 43 of those areas house prices are ten times or more average earnings in the area.

The top twenty areas are Kensington & Chelsea (24.4 times), Richmond upon Thames (13.2), Chiltern (13.2), West Devon (13.1), Cotswold (31.1) Elmbridge (13), South Hams (12.6) Torridge (12.2) Wealden in Sussex (12.2), Camden (12.1), Rutland (11.9), Sevenoaks (11.9), Wandsworth (11.6), South Shropshire (11.4), Derbyshire Dales (11.4) Ryedale (11.4) Waverly (11.3), Tunbridge Wells (11.1), City of Westminster (11.1), Epping Forest (11.0) and Bridgnorth (11).

By contrast, there are now only 47 areas in England & Wales where house prices are 5 times or less the average annual pay in the areas. The lowest ratio is in Burnley, Lancashire house prices are 3.2 times the average annual pay in the area. The average pay in Burnley is £21,993 and the average house price is £69,499.

For England and Wales as a whole the average annual salaries for full time workers is £28,740.00 and average house prices are 6.8 times that at £197.201.

GMB, Britain's general union ranked the data from all 364 councils in England & Wales for which figures are available by the ratio of average pay and average house prices from the highest to the lowest and the figures are shown on www.gmb.org.uk.

Paul Kenny, GMB Acting General Secretary said: "Young first time buyers and workers on below average wages are absolutely priced out of private house ownership in 202 of the 364 areas in England & Wales. Thus profitable private sector employers like ASDA and Tesco in these areas are now dependant on publicly funded social housing to house their workforce.

"Average house prices in England and Wales are now 50% above the long run ratio to average earnings. Unless something has happened to the housing market which is not yet understood it is hard to avoid the conclusion that house prices will move sideways during the next decade as average wages catch up.

"It is now essential that Councils in these 202 areas are allowed to build council houses for rent. It is an illusion to think that private house builders will be able to build houses which the low paid will be able to afford. It is also essential that the Government abandon its plan to inflate Council and Housing association rents up to the level of private sector rents. GMB also welcome measures which will help first time buyers on to the property ladder, like the proposal that the state take a share in properties being acquired by first time buyers. "

Notes:

1. The figures are from the 2005 annual survey of hours and earnings - workplace based Table 581 housing market sourced from the Annual Survey of hours and earnings, Office for National Statistics.

2. The mean house prices were based on land registry data. Source: Housing Market - Office of the Deputy Prime Minister

3 The full list of 364 areas in England &Wales visit www.gmb.org.uk/press. The areas comprise of London and Metropolitan boroughs, Unitary Authorities and Local Authority districts. No figures are available for 12 councils.